2023 (10) TMI 349

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....pril 2009 and March 2011 and challenges recovery of Rs. 57,50,058 under section 11A of Central Excise Act, 1944, along with applicable interest under section 11AB of Central Excise Act, 1944 while imposing penalty of like amount under section 11AC of Central Excise Act, 1944 by recourse to two separate options afforded by rule 6 of CENVAT Credit Rules, 2004. The credit directed to be reversed arose from attribution of the impugned 'taxable services' in production of 'rectified spirit' and of 'kraft paper' along with manufacture of 'sugar', 'molasses' and 'denatured spirit' that are cleared on payment of duty. As far as 'kraft paper' is concerned, clearances were governed by notification no. 4/2006-CE dated 1st March 2006 (at serial no. 90) ....

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....89,777, the impugned order has been disproportionate in taking recourse to rule 6 of CENVAT Credit Rules, 2004 and, by reference to the decision of the Tribunal in Tata Technologies Ltd v. Commissioner of Central Excise, Pune-I [2016 (42) STR 290 (Tri-Mumbai)], it was contended that the option vests always, and every time, with the assessee. 4. According to Learned Authorized Representative, it was admitted fact that appellant had not maintained separate books of accounts for 'dutiable goods' and 'exempt goods' thus precluding availability of information for any option other than the one resorted to by the adjudicating authority. Reliance was placed on the decision of the Hon'ble High Court of Bombay in RR Paints Pvt Ltd v. Commissioner ....

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....012 is availed;' of rule 2 of CENVAT Credit Rules, 2004 and 'Explanation 2. - Value of non-excisable goods for the purposes of this rule, shall be the invoice value and where such invoice value is not available, such value shall be determined by using reasonable means consistent with the principles of valuation contained in the Excise Act and the rules made thereunder.' below rule 6(1) of CENVAT Credit Rules, 2004 make it abundantly clear that proportionate credit availed on services used in common is to be reversed. The appellant has not done so and this, combined with absence of reporting of production of 'rectified spirit', brings the full force of the decision of the Hon'ble Supreme Court in re RR Paints Pvt Ltd to discar....